CBO
Releases Financial Stability Report 2025 Highlighting Resilience,
Sustainability, Market Confidence

Muscat,
23 Sep (ONA) — The Central Bank of Oman (CBO) has unveiled its 2025 Financial
Stability Report (FSR), offering a comprehensive and forward-looking assessment
of Oman’s financial system.

The
report reflects the strength of Oman’s financial foundations, the confidence of
its institutions and the nation’s capacity to thrive amid evolving domestic and
global dynamics, reaffirming Oman’s steady path toward long-term stability,
growth and prosperity.

The
report notes that despite the ongoing global uncertainty “financial stability
in Oman remains broadly intact”. Oman’s banking sector continued to demonstrate
resilience, supported by strong capital buffers, sound asset quality and ample
liquidity. The solvency stress tests confirmed its capacity to absorb severe
macro-financial shocks. The sector remained profitable and on the liquidity
front, all banks reported Liquidity Coverage Ratios above the minimum
regulatory requirement, with recent stress tests reaffirming their readiness to
absorb potential liquidity pressures.

Besides,
the banking sector has maintained profitability, non-bank financial
institutions have also been expanding gradually, reflecting their increasing
role in providing financial services.

The
report underscores the continued strength of the Omani financial system, as
reflected in the Composite Financial Stability Indicator (CFSI), which showed
positive trends, primarily supported by favorable factors such as higher oil prices,
enhanced debt sustainability and improved systemic risk indicators.

The
report also highlights increased external confidence in Oman’s economic and
financial resilience, demonstrated by recent upgrades of its sovereign credit
ratings to investment grade status by Moody’s and S&P. This progress is
largely attributed to Oman’s prudent fiscal and economic management and
stronger debt metrics.The FSR further presents findings from two key tools of macro-financial
surveillance: The Systemic Risk Survey, which indicated sustained confidence in
the Omani financial system, and the Credit Conditions Survey, which reflected
broadly stable lending conditions, despite slight easing in credit
availability. Together, these indicators reinforce positive sentiment and
support continued financial sector stability.

As
part of its broader focus to strengthen financial awareness, the CBO conducted
a national survey to assess public attitudes and behaviors toward financial
matters. The findings indicate rising levels of financial literacy and a more
cautious approach to money management among households.

Alongside
these efforts, several key regulatory and legal reforms took place, including
the issuance of CBO statutes, enactment of the new banking law to modernize the
legal framework in line with the evolving financial sector and the revised
deposit protection law, ensuring a more responsive and resilient financial
system aligned with international standards.

Looking
ahead, the CBO remains committed to strengthening the resilience of Oman’s
financial system through proactive surveillance, sound regulatory reforms and
sustainable finance initiatives. By closely monitoring emerging risks and
adapting its policy tools accordingly, the CBO aims to preserve financial stability
and support sustainable economic growth in Oman.

The
2025 Financial Stability Report serves as a key reference of macro-financial
surveillance system for stakeholders, offering insights into potential vulnerabilities
and the strategic responses since its first publication in 2013.

—Ends/AG